PAYROLL TAXES AND THE LABOR MARKET: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS

dc.creator	Hernández,Gustavo
dc.date	2012-05-01
dc.date.accessioned	2019-04-25T12:41:58Z
dc.date.available	2019-04-25T12:41:58Z
dc.identifier	https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0719-04332012000100004
dc.identifier.uri	http://revistaschilenas.uchile.cl/handle/2250/61259
dc.description	This study uses a computable general equilibrium model to analyze the effects of eliminating Colombia's parafiscal taxes, which finance social programs. In the model, these are substituted by alternative financing sources: VAT, indirect taxes or taxes on capital. The results show that elimination of parafiscal taxes produces a one percentage point decrease in the unemployment rate, as long as these are not substituted by other taxes. However, when other taxes are substituted for parafiscal taxes, there may not be any effect on the unemployment rate. This implies that eliminating parafiscal taxes does not produce the effects expected by a partial equilibrium analysis, that is, a significant reduction in the unemployment rate.
dc.format	text/html
dc.language	en
dc.publisher	Pontificia Universidad Católica de Chile. Instituto de Economía.
dc.relation	10.4067/S0719-04332012000100004
dc.rights	info:eu-repo/semantics/openAccess
dc.source	Latin american journal of economics v.49 n.1 2012
dc.subject	Payroll taxes
dc.subject	applied general equilibrium
dc.subject	tax replacement
dc.title	PAYROLL TAXES AND THE LABOR MARKET: A COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS